The latest data from Paragon Bank has revealed that the proportion of BTL properties purchased in southern England fell to a record low in 2023.
According to the data, 35% of homes bought with a BTL mortgage during 2023 were in the South East, Greater London and the South West — down from 39% in 2022 and 52% in 2025, the year before the stamp duty surcharge was introduced.
Based on the research, Paragon noted that the number of rental properties acquired in the south has fallen each year, except for 2020 and 2021, when the stamp duty holiday was introduced during the Covid-19 pandemic.
Broken down further, the proportion of mortgaged BTL homes purchased in London fell from 19% of the UK total in 2015 to 12% last year, while in the South East, there was a decline form 24% to 17% over the same period.
Meanwhile, the proportion of mortgages BTL homes bought in the South West fell from 9% to 6% of the UK total.
All other regions recorded an increase in the proportion of BTL homes purchased between 2015 and 2023, apart from the east of England.
Richard Rowntree, Paragon Bank’s managing director of mortgages (pictured above), said: “The introduction of the stamp duty surcharge disproportionately impacted those markets with above average house prices in the south of England.
“Over the long-term, it’s clear that we will need more rental homes and a vibrant PRS across the UK.
“With the population forecast to increase by 9.9% - or by 6.6 million people – by 2036, demand for rental property is only going to be stronger— that is particularly true of areas in the south of the country, particularly London where the transient population means that a strong supply of rental homes vital.
“We are seeing the PRS utilised by a broader range of people than ever before and those who want or need to rent a home should expect to be able to choose from a range of fairly priced, decent quality rental homes.
“Unless supply is boosted to meet forecast growth in demand, rents will only grow higher in markets with extreme supply/demand imbalances.”
